Economic Benefits for Alabama

AlabamaImproved graduation rates such as those achieved through Helping Families in Alabaster City Schools can have enormous economic benefits:

Investing in early childhood education to increase high school graduation rates would boost Alabama’s economy. For example, a 5 percent increase in male high school graduation rates is estimated to save Alabama $82 million in annual incarceration costs and crime-related expenditures. If that same 5 percent not only graduated but went on to college at the same rates as typical male high school graduates, their average earnings would accrue an additional $43 million annually. If just one year’s high school dropouts could be converted to high school graduates, Alabama households would have an additional $6.7 billion in accumulated wealth over the lifetime of the students from the graduating class. [1]

The Alliance for Excellent Education estimates that if we improve male high school graduation rates by 5 percent, we will achieve an economic benefit for the State valued at $383 million per year. Other benefits also accrue to the State, including improved health, boosted national security and better peace and dignity for all. [2]

An Alliance for Excellent Education chart of economic benefits of increasing the High School Graduation Rate for Public School Students in the Birmingham-Hoover, AL metro area shows that if the graduation rate of the Class of 2013 had been 90 percent (3,350 more graduates) the following would have resulted: [3]

  • 300 new jobs
  • Home sales increase of $80 million
  • $2.9 million increase in state/local tax revenue
  • Federal Tax Revenue increase of $6.8 million
  • Annual Gross Regional Product increase of $60 million
  • Annual Spending increase of $33 million
  • Annual Earnings increase $43 million

The Alabama Center for Insurance Information and Research completed an analysis estimating the statistical correlation between crime and healthcare costs in Alabama. Holding other factors constant, the analysis demonstrates a reduction of one violent crime in Alabama is likely to decrease the cost of healthcare for all payers in the State of $81,191. The result is additive, indicating that each violent crime prevented will decrease Alabama healthcare costs by an additional $81,191. [4]


  1. National Institute for Early Childhood Education Research. The Heckman Equation, James J. Heckman, Henry Schultz Distinguished Service Professor of Economics at The University of Chicago, a Nobel Laureate in economics and an expert in the Economics of Human Development.
  2. The Alliance for Excellent Education
  3. The Alliance for Excellent Education
  4. Letter, Lars Powell, Director of the Center for Insurance Information and Research, University of Alabama, 2016

Upcoming Events

4th Annual Child Advocacy Day
VOICES for Alabama’s Children
Montgomery, AL
March 16, 2017
“Helping Families Initiative”
Alabama District Attorneys Association
Fairhope, AL
April 6–9, 2017
“Next Generation of K-12 Indicator and response Systems to Increase Students’ Post-Secondary Readiness and Persistence”
A Bill & Melinda Gates Foundation supported initiative, sponsored by the Everyone Graduates Center at Johns Hopkins University
Baltimore, Maryland
May 1–3, 2017
“Getting Better at Getting Better”
Carnegie Foundation Summit on Improvement in Education
San Francisco, CA
March 26–30, 2017
“Breaking Down Barriers — Humanity Matters”
National Association of Social Workers — Alabama
Bryant Conference Center
Tuscaloosa, AL
April 24–25, 2017